L and M are partners in a firm sharing profits and losses in the ratio of 7:3. They admitted N for 3/7th share which he takes 2/7th from L and 1/7 from M. What is the New profit sharing ratio?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 29:11:30.
As sacrifice share of old partners are given in the question itself, hence there is no need to calculated it.
Calculation of New profit sharing ratio-
New share = Old share - Sacrifice share
L’s new share = 7/10 – 2/7
= (49-20)/70
= 29/70
M’s new share = 3/10 – 1/7
= (21-10)/70
= 11/70
N’s new share = 2/7 + 1/7 = 3/7 (given)
New ratio among L, M and N = 29/70 : 11/70 : 3/7
= 29/70 : 11/70 : 30/70
= 29 : 11 : 30